AVNET INC
For the period ended Dec 28, 2024. Filed Jan 31, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Dec 28, 2024 · Filed Jan 31, 2025
AVT$79.28+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-11-01.
0000008858-24-000041
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-12-28; filed 2025-01-31.
0000008858-25-000009
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 67 previous paragraphs and 73 current paragraphs.
34 unchanged; 31 reworded; 8 added; 1 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
Additionally, the Company’s inventories relative to its sales are higher than they have historically been as a result of this industry downturn. The Company has and may in the future purchase additional inventories from electronic component suppliers, even in an industry downturn, if the Company believes the purchase will benefit the Company’s financial or strategic business objectives.
Current report
During the second quarter and first half of fiscal 2025, both operating groups continued to experience a cyclical downturn resulting in lower demand for the Company’s products. Sales of $5.66 billion for the second quarter of fiscal 2025 decreased $541.5 million, or 8.7%, as compared to $6.20 billion for the same quarter last year. Sales for the first six months of fiscal 2025 were $11.27 billion, a decrease of $1.27 billion as compared to sales of $12.54 billion for the first six months of fiscal 2024.
Current report
Gross profit and gross profit margin were $1.20 billion and 10.7%, respectively, for the first six months of fiscal 2025 as compared with $1.45 billion and 11.6%, respectively, for the first six months of fiscal 2024.
Current report
SG&A expenses for the first six months of fiscal 2025 were $875.7 million, or 7.8% of sales, as compared with $952.0 million, or 7.6% of sales, in the first six months of fiscal 2024. SG&A expenses as a percentage of gross profit for the first six months of fiscal 2025 were 72.8% as compared with 65.5% in the first six months of fiscal 2024.
Current report
During the first six months of fiscal 2025, the Company incurred restructuring, integration, and other expense costs of $30.1 million. Restructuring expenses consisted of severance and other employee-related expenses of $7.7 million for reduction of over 150 employees across the Company, $5.3 million of facility exit costs primarily related to an office closure in the Americas, $14.9 million of asset impairments, $4.7 million of integration and other costs, and a benefit of $2.5 million for changes in estimates for costs associated with prior year restructuring actions. The after-tax impact of restructuring, integration, and other expenses were $22.3 million and $0.25 per share on a diluted basis.
Current report
Operating income for the first six months of fiscal 2025 was $297.6 million, a decrease of $192.5 million, from the first six months of fiscal 2024 operating income of $490.0 million. The year-over-year decrease in operating income was primarily due to the decrease in sales, and lower gross profit margin, partially offset by the favorable impact from foreign currency exchange rates. Adjusted operating income for the first six months of fiscal 2025 was $328.4 million, a decrease of $175.5 million or 34.8% from the first six months of fiscal 2024. Operating income margin was 2.6% in the first six months of fiscal 2025, a decrease of 127 basis points compared to 3.9% in the prior year first six months.
Current report
Interest and other financing expenses in the second quarter of fiscal 2025 were $62.4 million, a decrease of $11.9 million as compared to $74.3 million in the second quarter of fiscal 2024. Interest and other financing expenses in the first six months of fiscal 2025 were $126.8 million, a decrease of $18.3 million, as compared with interest and other
Current report
As a result of the factors described above, the Company’s net income for the first six months of fiscal 2025 was $146.2 million, or $1.65 per share on a diluted basis, as compared with $327.2 million, or $3.54 per share on a diluted basis, in the first six months of fiscal 2024.
Removed paragraphs (1)
Previous report
Sales of $5.60 billion for the first quarter of fiscal 2025 decreased $731.5 million, or 11.6%, as compared to $6.34 billion for the same quarter last year, primarily due to reduced demand for electronic components resulting from the current market downturn in the electronic components industry.
Reworded paragraphs (31)
Previous wording
The global electronic components market has a history of cyclical downturns followed by periods of increased demand. Beginning in the second half of calendar year 2023, the industry began to experience a downturn marked by a decrease in sales due to a combination of elevated customer inventory levels and lower underlying demand for electronic components. As a result, the Company has seen elevated inventory levels and decreased sales, resulting in lower operating income. The duration of the current downturn is uncertain, although the Company had year over year sales growth in the Asia region during the first quarter of fiscal 2025. The Company expects sales in the second quarter of fiscal 2025 to be down 4% to up 2% as compared to the first quarter of fiscal 2025.
Current wording
The global electronic components market has a history of cyclical downturns followed by periods of increased demand. Beginning in the second half of calendar year 2023, the industry began to experience a downturn marked by a decrease in sales due to a combination of elevated customer inventory levels and lower underlying demand for electronic components. As a result, the Company has seen decreased sales, resulting in lower operating income. The duration of the current downturn is uncertain. The Company expects sales in the third quarter of fiscal 2025 to be down 6% to down 11%, compared to the second quarter of fiscal 2025.
Previous wording
The following table presents the percentage change in sales for the first quarter of fiscal 2025 as compared to fiscal 2024, by geographic region and operating group.
Current wording
The following table presents the percentage change in sales for the second quarter and first six months of fiscal 2025 as compared to the second quarter and first six months fiscal 2024, by geographic region and operating group.
Previous wording
EC sales of $5.26 billion in the first quarter of fiscal 2025 decreased $657.3 million, or 11.1%, from the prior year first quarter sales of $5.91 billion, with the Americas and EMEA regions contributing to the decrease offset by sales growth in the Asia region. The decrease in sales is primarily due to sales volume decreases due to the market downturn in the electronic components industry and, to a lesser extent, an unfavorable product mix of lower priced electronic components.
Current wording
EC sales of $5.32 billion in the second quarter of fiscal 2025 decreased $494.3 million, or 8.5%, from the prior year second quarter sales of $5.81 billion, with the Americas and EMEA regions contributing to the decrease offset by sales growth in the Asia region. The decrease in sales is primarily due to sales volume decreases due to the market downturn in the electronic components industry and, to a lesser extent, an unfavorable product mix of lower priced electronic components.
Previous wording
Farnell sales for the first quarter of fiscal 2025 were $347.1 million, reflecting a decrease of $74.1 million, or 17.6%, compared to the same period in the prior year. Farnell sales in constant currency for the first quarter of fiscal 2025 decreased by 18.2% year over year. The decrease in sales in the first quarter of fiscal 2025 is primarily due to lower demand for on-the-board electronic components.
Current wording
Farnell sales for the second quarter of fiscal 2025 were $345.6 million, reflecting a decrease of $47.2 million, or 12.0%, compared to the same period in the prior year. The decrease in sales in the second quarter of fiscal 2025 is primarily due to lower demand for on-the-board electronic components.
Previous wording
The Company’s gross profit is primarily affected by sales volume and product and geographic sales mix. Gross profit for the first quarter of fiscal 2025 was $140.7 million, or 18.8% lower than the first quarter of fiscal 2024. This decrease is primarily due to sales volume decreases in both operating groups.
Current wording
The Company’s gross profit and gross profit margin are primarily affected by sales volume, product mix, and geographic sales mix. Gross profit for the second quarter of fiscal 2025 was $110.1 million, or 15.6% lower than the second quarter of fiscal 2024. This decrease is primarily due to sales volume decreases in both operating groups and to a lesser extent from the decline in gross profit margin in each operating group.
Previous wording
Gross profit margin decreased by 97 basis points to 10.8% for the first quarter of fiscal 2025 when compared to the first quarter of fiscal 2024. The decrease in gross profit margin is primarily due to shifts in geographic sales mix. Sales in the higher gross profit margin western regions represented approximately 53% of sales in the first quarter of fiscal 2025, versus 61% during the first quarter of fiscal 2024.
Current wording
Gross profit margin decreased by 86 basis points to 10.5% for the second quarter of fiscal 2025 when compared to the second quarter of fiscal 2024. The decrease in gross profit margin is primarily due to shifts in geographic sales mix, partially offset by increases in gross margin from certain supplier engagements. Sales in the higher gross profit margin western regions represented approximately 52% of sales in the second quarter of fiscal 2025, versus 60% of sales during the second quarter of fiscal 2024.
Previous wording
EC gross profit margin decreased year over year largely due to the change in geographic mix and from an increase in product mix to lower margin electronic components. Farnell gross profit margin decreased year over year, primarily due to lower sales of higher margin on-the-board electronic components.
Current wording
EC gross profit margin decreased year over year largely due to the change in geographic mix. Farnell gross profit margin decreased year over year, primarily due to lower sales of higher margin on-the-board electronic components.
Previous wording
Selling, general, and administrative expenses (“SG&A expenses”) decreased $48.5 million or 10.0% from the first quarter of fiscal 2024. The decrease in SG&A expenses is primarily due to decreases in variable operating expenses associated with the decrease in sales volumes discussed above and from restructuring actions, slightly offset by the impact of changes in foreign currency translation rates.
Current wording
Selling, general, and administrative expenses (“SG&A expenses”) decreased $27.8 million or 6.0% from the second quarter of fiscal 2024. The decrease in SG&A expenses is primarily due to decreases in variable operating expenses associated with the decrease in sales volumes discussed above and from restructuring actions taken by the Company, slightly offset by the impact of changes in foreign currency translation rates.
Previous wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the first quarter of fiscal 2025, SG&A expenses were 7.8% of sales and 72.2% of gross profit, as compared with 7.7% and 65.1%, respectively, in the first quarter of fiscal 2024. The year-over-year increases in SG&A expenses as a percentage of both sales and gross profit are primarily due to the decrease in sales and gross profit without a proportional reduction in SG&A expenses, resulting in lower operating leverage.
Current wording
Management monitors SG&A expenses as a percentage of sales and as a percentage of gross profit. In the second quarter of fiscal 2025, SG&A expenses were 7.7% of sales and 73.3% of gross profit, as compared with 7.5% and 65.8%, respectively, in the second quarter of fiscal 2024. The year-over-year increases in SG&A expenses as a percentage of both sales and gross profit are primarily due to the decrease in sales and gross profit without a proportional reduction in SG&A expenses, resulting in lower operating leverage.
Previous wording
In fiscal 2024, the Company initiated a restructuring plan to improve operating income by reducing SG&A expenses including within the Farnell operating group. In the first quarter of fiscal 2025, these efforts continued, leading to $23.5 million in restructuring, integration, and other expenses primarily for Farnell. Additionally, the Company incurred $2.9 million in distribution center start-up integration costs, primarily in EC EMEA.
Current wording
In fiscal 2024, the Company initiated a restructuring plan to improve operating income by reducing SG&A expenses including within the Farnell operating group. In the second quarter of fiscal 2025, these efforts continued, leading to $4.0 million in restructuring, integration, and other expenses primarily for Farnell.
Previous wording
As a result of these initiatives, the Company recorded total restructuring, integration, and other expense in the first quarter of fiscal 2025 of $26.4 million comprised of severance and other employee-related expenses of $3.4 million for reductions of approximately 40 employees across the Company, $5.2 million of facility exit costs primarily related to an office closure in the Americas, $14.9 million of asset impairments, and $2.9 million of integration and other costs. The after-tax impact of restructuring, integration, and other expenses were $19.7 million and $0.22 per share on a diluted basis.
Current wording
As a result of these initiatives, the Company recorded total restructuring, integration, and other expense in the second quarter of fiscal 2025 of $3.8 million comprised of severance and other employee-related expenses of $4.3 million, $0.1 million of facility exit costs primarily related to an office closure in the Americas, $1.7 million of integration and other costs, and a benefit of $2.3 million for changes in estimates for costs associated with prior year restructuring actions. The after-tax impact of restructuring, integration, and other expenses were $2.7 million and $0.03 per share on a diluted basis.
Previous wording
Comparatively, the Company recorded restructuring, integration, and other expenses of $7.1 million during the first quarter of fiscal 2024 consisting of severance costs of $2.7 million, and other expenses of $4.4 million.
Current wording
Comparatively, the Company recorded restructuring, integration, and other expenses of $5.2 million and $12.3 million during the second quarter and first six months of fiscal 2024, respectively.
Previous wording
Operating income for the first quarter of fiscal 2025 was $142.2 million, a decrease of $111.5 million or 44.0%, year over year. Operating income margin for the first quarter of fiscal 2025 was 2.5%, a decrease of 147 basis points compared to 4.0% in the first quarter of fiscal 2024. The decreases in operating income and operating income margin are primarily due to the decrease in gross profit primarily from lower sales without a proportionate decrease in SG&A expenses, and restructuring, integration and other expenses, as discussed above. Adjusted operating income for the first quarter of fiscal 2025 was $168.9 million, a decrease of $92.8 million, or 35.4%.
Current wording
Operating income for the second quarter of fiscal 2025 was $155.3 million, a decrease of $80.9 million or 34.3%, year over year. Operating income margin for the second quarter of fiscal 2025 was 2.7%, a decrease of 107 basis points compared to 3.8% in the second quarter of fiscal 2024. The decreases in operating income and operating income margin are primarily due to the decrease in gross profit primarily from lower sales without a proportionate decrease in SG&A expenses, and restructuring, integration and other expenses, as discussed above. Adjusted operating income for the second quarter of fiscal 2025 was $159.5 million, a decrease of $82.7 million, or 34.2%. Adjusted operating income margin for the second quarter of fiscal 2025 was 2.8% compared to 3.9% in the second quarter of fiscal 2024.
Previous wording
Comparing the first quarter of fiscal 2025 to the first quarter of fiscal 2024, EC operating income decreased 27.6% to $197.4 million, and EC operating income margin decreased 86 basis points to 3.8%, with decreases in the Americas and EMEA regions offset by an improvement in the Asia region. Farnell operating income decreased 89.5% to $1.9 million in the first quarter of fiscal 2025 and Farnell operating income margin decreased 366 basis points year over year to 0.5%. The decreases in operating income and operating income margin in both operating groups are due to the decrease in gross profit primarily from lower sales without a proportionate decrease in SG&A expenses. Corporate operating expenses were $30.3 million in the first quarter of fiscal 2025, an increase of 5.4% when compared with $28.7 million in the first quarter of fiscal 2024.
Current wording
Comparing the second quarter of fiscal 2025 to the second quarter of fiscal 2024, EC operating income decreased 26.7% to $181.6 million, and EC operating income margin decreased 85 basis points to 3.4%, with a decrease in the EMEA region offset by improvements in the Americas and Asia regions. Farnell operating income decreased 77.9% to $3.5 million in the second quarter of fiscal 2025 and Farnell operating income margin decreased 299 basis points year over year to 1.0%. The decreases in operating income and operating income margin in both operating groups are due to the decrease in gross profit primarily from lower sales without a proportionate decrease in SG&A expenses.
Previous wording
Interest and Other Financing Expenses, Net and Other (Expense) Income, Net
Current wording
Interest and Other Financing Expenses, Net and Other Expense, Net
Previous wording
Interest and other financing expenses in the first quarter of fiscal 2025 were $64.4 million, a decrease of $6.4 million as compared to $70.8 million in the first quarter of fiscal 2024. The decrease in interest and other financing expenses in the first quarter of fiscal 2025 compared to fiscal 2024 is primarily a result of lower outstanding borrowings and average borrowing rates.
Current wording
financing expenses of $145.1 million in the first six months of fiscal 2024. The decrease in interest and other financing expenses in the second quarter and first six months of fiscal 2025 compared to fiscal 2024 is primarily a result of lower outstanding borrowings and average borrowing rates.
Previous wording
The Company had other expenses of $3.0 million in the first quarter of fiscal 2025 compared to other income of $6.0 million in the first quarter of fiscal 2024. The increase in other expenses in the first quarter of fiscal 2025 is primarily due to foreign currency translation losses.
Current wording
The Company had other expenses of $2.6 million in the second quarter of fiscal 2025 compared to other expenses of $8.4 million in the second quarter of fiscal 2024. The Company had other expenses of $5.7 million in the first six months of fiscal 2025, compared to other expenses of $2.4 million in the first six months of fiscal 2024. The decrease in other expenses in the second quarter and the increase in the first six months of fiscal 2025 is primarily due to differences in foreign currency translation losses.
Previous wording
During the first quarter of fiscal 2024, the Company recorded a gain on legal settlements and other of $86.5 million in connection with the settlements of claims filed against certain manufacturers of capacitors.
Current wording
During the first six months of fiscal 2024, the Company recorded a gain on legal settlements and other of $86.5 million in connection with the settlements of claims filed against certain manufacturers of capacitors.
Previous wording
Income tax expenses were $15.8 million for the first quarter of fiscal 2025, reflecting an effective tax rate of 21.1% compared to $66.2 million, reflecting an effective tax rate of 24.0% in the first quarter of fiscal 2024. The decrease in the effective tax rate for the first quarter of fiscal 2025 as compared to the first quarter of fiscal 2024 was primarily due to the increases in tax attribute carryforwards, partially offset by the mix of income in higher tax jurisdictions. See Note 7 “Income taxes” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Current wording
Income tax expenses for the second quarter and first six months of fiscal 2025 were $3.0 million and $18.8 million, respectively, reflecting an effective tax rate of 3.4% and 11.4%, respectively. In comparison, for the second quarter and first six months of fiscal 2024, income tax expense were $35.6 million and $101.8 million, respectively, reflecting an effective tax rate of 23.2% and 23.7%, respectively. The decrease in the effective tax rate for the second quarter of fiscal 2025 as compared to the second quarter of fiscal 2024 was primarily due to the increases in tax attribute carryforwards and decreases to unrecognized tax benefit reserves. The decrease in the effective tax rate for the first six months of fiscal 2025 as compared to the first six months of fiscal 2024 was primarily due to the increases in tax attribute carryforwards, partially offset by the mix of income in higher tax jurisdictions. See Note 7 “Income taxes” to the Company’s consolidated financial statements included in this Quarterly Report on Form 10-Q.
Previous wording
As a result of the factors described above, the Company’s net income for the first quarter of fiscal 2025 was $59.0 million, or $0.66 per share on a diluted basis, as compared with $209.3 million, or $2.25 per share on a diluted basis, in the first quarter of fiscal 2024.
Current wording
As a result of the factors described above, the Company’s net income for the second quarter of fiscal 2025 was $87.3 million, or $0.99 per share on a diluted basis, as compared with $117.9 million, or $1.28 per share on a diluted basis, in the second quarter of fiscal 2024.
Previous wording
Net cash provided by operating activities was $106.3 million for the first quarter of fiscal 2025, compared to net cash used by operating activities of $41.3 million for the first quarter of fiscal 2024. The $147.6 million increase in net cash provided by operating activities year over year is primarily due to improvements in cash used for working capital and other as working capital levels have begun to be more in line with sales, offset by lower cash provided by net income. Cash generated from working capital and other was $0.8 million during the first quarter of fiscal 2025, compared to cash used of $280.1 million during the first quarter of fiscal 2024, with the difference attributable primarily to inventories. During the first quarter of fiscal 2025, the Company used less cash to purchase inventory due to inventory levels already being elevated and because of lower sales. The Company also had increases in accounts receivable due to timing of sales and collections when compared to the prior year. The Company received $86.1 million of cash from legal settlements during the first quarter of fiscal 2024.
Current wording
Net cash provided by operating activities was $444.2 million for the first six months of fiscal 2025, compared to net cash used by operating activities of $83.6 million for the first six months of fiscal 2024. The $527.7 million increase in net cash provided by operating activities year over year is primarily due to improvements in cash used for working capital and other as working capital levels have begun to be more in line with sales, offset by lower cash provided by net income. Cash generated from working capital and other was $232.5 million during the first six months of fiscal 2025, compared to cash used of $539.4 million during the first six months of fiscal 2024, with the difference attributable primarily to reductions in inventory and the timing of payments for inventory purchases. The Company also had increases in accounts receivable due to timing of sales and collections when compared to the prior year. The Company received $86.1 million of cash from legal settlements during the first six months of fiscal 2024.
Previous wording
Net borrowings of debt totaled $15.7 million during the first quarter of fiscal 2025, including net proceeds of $27.9 million under the Securitization Program, offset by net repayments of $11.4 million under the Credit Facility and $0.8 million for other debt. This compares to $151.4 million of net borrowing during the first quarter of the prior fiscal year. The Company paid cash dividends to shareholders of $0.33 per share, or $28.9 million, during the first quarter of fiscal 2025 as compared to $0.31 per share, or $28.3 million, during the first quarter of fiscal 2024. The Company has repurchased $100.0 million of common stock under the share repurchase plan during the first quarter of fiscal 2025 compared to $24.3 million in the same period of the prior year.
Current wording
Net repayments of debt totaled $307.7 million during the first six months of fiscal 2025, including net repayments of $321.8 million under the Credit Facility and $70.8 million for other debt, offset by net proceeds of $84.9 million under the Securitization Program. This compares to $362.1 million of net borrowing during the first six months of the prior fiscal year. The Company paid cash dividends to shareholders of $0.66 per share, or $57.4 million, during the first six months of fiscal 2025 as compared to $0.62 per share, or $56.1 million, during the first six months of fiscal 2024. The Company has repurchased $152.2 million of common stock under the share repurchase plan during the first six months of fiscal 2025 compared to $86.0 million in the same period of the prior year.
Previous wording
The Company’s purchases of property, plant and equipment decreased during the first quarter of fiscal 2025 by $44.3 million, when compared to the same period in fiscal 2024, primarily due to distribution center investments in EMEA in the first quarter of fiscal 2024.
Current wording
The Company’s purchases of property, plant and equipment decreased during the first six months of fiscal 2025 by $97.0 million, when compared to the same period in fiscal 2024, primarily due to distribution center investments in EMEA in the first six months of fiscal 2024.
Previous wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the short-term working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of first quarter of fiscal 2025 was $0.10 billion.
Current wording
The Company has various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations to fund the short-term working capital, foreign exchange, overdraft, capital expenditure, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of second quarter of fiscal 2025 was $23.4 million.
Previous wording
these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the consolidated statements of cash flows. Factoring fees for the sales of trade accounts receivable are recorded within “Interest and other financing expenses, net” and were not material to the consolidated financial statements.
Current wording
As an alternative form of liquidity outside of the United States, the Company sells certain of its trade accounts receivable on a non-recourse basis to financial institutions pursuant to factoring agreements. The Company accounts for these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the consolidated statements of cash flows. Factoring fees for the sales of trade accounts receivable are recorded within “Interest and other financing expenses, net” and were not material to the consolidated financial statements.
Previous wording
The Company held cash and cash equivalents of $267.5 million as of September 28, 2024, of which $230.1 million was held outside the United States. As of June 29, 2024, the Company held cash and cash equivalents of $310.9 million, of which $179.6 million was held outside of the United States.
Current wording
The Company held cash and cash equivalents of $172.1 million as of December 28, 2024, of which $145.1 million was held outside the United States. As of June 29, 2024, the Company held cash and cash equivalents of $310.9 million, of which $179.6 million was held outside of the United States.
Previous wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company generated $837.6 million in cash flows from operating activities over the trailing four fiscal quarters ended September 28, 2024.
Current wording
During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company will use cash for working capital requirements during periods of higher growth. The Company generated $1.22 billion in cash flows from operating activities over the trailing four fiscal quarters ended December 28, 2024.
Previous wording
As of the end of the first quarter of fiscal 2025, the Company had a combined total borrowing capacity of $2.20 billion under the Credit Facility and the Securitization Program. There were $768.6 million of borrowings outstanding and $0.9 million in letters of credit issued under the Credit Facility, and $443.0 million outstanding under the Securitization Program, resulting in approximately $824.7 million of total committed availability as of September 28, 2024. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings. The Company expects to amend and extend the Securitization Program during the second quarter of fiscal 2025 in the normal course of business.
Current wording
As of the end of the second quarter of fiscal 2025, the Company had a combined total borrowing capacity of $2.00 billion under the Credit Facility and the Securitization Program. There were $406.8 million of borrowings outstanding and $0.9 million in letters of credit issued under the Credit Facility, and $500.0 million outstanding under the Securitization Program, resulting in approximately $1.09 billion of total committed availability as of December 28, 2024. Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable in the United States to support desired borrowings.
Previous wording
During the first quarter of fiscal 2025, the Company had an average daily balance outstanding of approximately $1.09 billion under the Credit Facility, and approximately $468.4 million under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Current wording
During the second quarter and first six months of fiscal 2025, the Company had an average daily balance outstanding of approximately $1.04 billion and $1.06 billion, respectively, under the Credit Facility, and approximately $498.9 million and $483.6 million, respectively, under the Securitization Program. The Company also has average borrowings that are higher than quarter end borrowings from various lines of credit, financing arrangements, and other forms of bank debt in the U.S. and various foreign locations.
Previous wording
As of September 28, 2024, the Company may repurchase up to an aggregate of $566.6 million of shares of the Company’s common stock through the share repurchase program approved by the Board of Directors. The Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. During the first quarter of fiscal 2025, the Company repurchased $99.0 million of common stock.
Current wording
As of December 28, 2024, the Company may repurchase up to an aggregate of $515.4 million of shares of the Company’s common stock through the share repurchase program approved by the Board of Directors. The Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions (including share price), and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. During the second quarter of fiscal 2025, the Company repurchased $51.2 million of common stock.
Previous wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the first quarter of fiscal 2025, the Board of Directors approved a dividend of $0.33 per share, which resulted in $28.9 million of dividend payments during the quarter.
Current wording
The Company has historically paid quarterly cash dividends on shares of its common stock, and future dividends are subject to approval by the Board of Directors. During the second quarter of fiscal 2025, the Board of Directors approved a dividend of $0.33 per share, which resulted in $28.6 million of dividend payments during the quarter.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
As an alternative form of liquidity outside of the United States, the Company sells certain of its trade accounts receivable on a non-recourse basis to financial institutions pursuant to factoring agreements. The Company accounts for